Bajaj Finance Q4 Review - Asset Quality Improves; Expect A Normalised FY22: Motilal Oswal
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

Bajaj Finance Q4 Review - Asset Quality Improves; Expect A Normalised FY22: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Bajaj Finance Ltd.’s Q4 FY21 profit after tax grew 42% YoY / 18% QoQ to Rs 13.5 billion (2% miss).

While net interest income beat our estimates by 7%, opex was 12% above our expectations.

With in-line provisions, profit after tax came in largely in line with our expectations.

For FY21, the company reported assets under management/net interest income/pre-provision operating profit growth of 4%/3%/6% YoY.

However, profit after tax declined 16% on the back of aggressive cleanup stress due to Covid-19.

The proforma gross non-performing loan ratio declined from 2.9% to 1.8% QoQ.

Click on the attachment to read the full report:

Motilal Oswal Bajaj Finance Q4FY21 Result Review.pdf

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